Venture Debt
2 articles
Funding & Finance
How to Read a Venture Debt Term Sheet: The Clauses That Decide Cost, Dilution, and Flexibility
Venture debt's true cost and impact extend beyond the headline interest rate, residing in warrants, repayment structures, and covenants. Understanding these clauses is crucial for founders to align financing with company needs and avoid undue dilution or operational restrictions.
Marek Kowalski·November 8, 2026
Funding & Finance
Four Venture Debt Terms That Decide Your Cash Flow, Flexibility, and Dilution
Venture debt involves four key terms: interest rates, repayment schedules, warrant coverage, and covenants, which collectively impact a startup's cash flow, operational flexibility, and equity dilution. Understanding the interplay between these components is crucial for founders to negotiate favorable financing terms.
Sofia Reyes·November 7, 2026